Replies to post #303103 on ERHC Energy Inc (ERHE)

[pand2015]

Tamtam-think you're right:
traded shares :)
Look at the accumulation: it's recovering well

[Manti]

A couple of observations based on having watched new shares enter the market on many different occasions:

If for some reason those driving the trading want the volume to be higher, they arrange for the selling broker to short shares rather than just selling them directly. This basically doubles the volume from what it would otherwise be because he shorts and covers in separate trades.

The larger volume days near the bottom are usually pre-arranged buyers getting loaded, especially when the volume at a particular price level exceeds the quantity shown on the bid prior to the dump.

Much of the trading volume is flippers trying to protect their cost basis. If the price doesn't go up, they dump on the bid and try to buy back a tick lower, but if it doesn't drop, then they buy back in again at the same price.

This same technique is used by the professional traders. They'll wipe out the bid to keep the price in check while they accumulate at that price level. This may have happened yesterday. There was good bid support at 6, and when the 7's started getting hit, they wiped out the bids at 6 and left less than 100k showing for hours while they took everything offered at 6, and then even grabbed 10M or so of the 7's later in the day.

One other thing I've observed is that the sp is often irrational to retail. When the message boards are totally negative and shareholders are in despair is when the sp goes up, contrary to any logic.

Last of all, don't fight the trend, and right now, the trend appears to be UP. The powers that be seem to want it higher, so go with the flow....

Have a nice day (although it's already late for you). ;-)

[midtieroil]

Do you honestly believe the share count on March 31 and April 30 were exactly the same? We do have some evidence because the last number someone received from the transfer agent was higher than the number reported for April 30th. I think this 10Q is garbage. There is NOTHING in it about the Chrome debenture but I can tell you what I believe happened there.

There are no debentures that I can find that allowed the debenture holders to convert at 40% of market. Yet in this 10Q it says the range is 40-60% of market. Nowhere in this 10Q are the terms of the Chrome debenture disclosed but with every other debenture at least some of the terms were disclosed. It appears to me Chrome's debenture could be and was converted almost immediately upon issue and that it was at 40% of market price. In other words, Chrome got $625,000 of stock for $250,000. Sounds a lot like they just wanted to sell a bunch of shares to Chrome at a cheap price and this was a good way to do it despite the fact that other shareholders were not given that opportunity.

Yes, some of this is speculation but please provide proof if you believe it is wrong.

To make matters even worse. There is no Form 4 filing by Chrome. Did Chrome get no shares upon conversion? Did their debenture vanish into thin air and their investment go up in smoke? Or did Chrome fail to report their acquisition of shares as required by law?

So bottom line is I do believe that many new shares were issued between March 31 and April 30 and that the reporting is incorrect. I also believe many more shares were issued between April 30 and now and that many more shares will be issued to pay off all the debentures still outstanding. And I also believe that there are not enough remaining authorized shares to do so. And if you believe any of this is wrong, prove it!!!!!

[midtieroil]

So you believe out of approximately 1.9 billion shares traded in April, and the 1.2 billion shares traded so far in May, none of those are new shares? What do you believe the share count was as of April 30th and what do you believe it is now? And be sure to remember, Chrome seems to have converted their debenture. Do you think those shares are included since they still have not been reported?